Fiat-Referenced Stablecoin (FRS)
A legal category defined under Hong Kong's Stablecoins Ordinance, covering any token that purports to maintain a stable value referencing a fiat currency and is either issued in Hong Kong or primarily references the Hong Kong dollar — issuers must hold an HKMA license to lawfully issue.
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Issuer License
A formal authorization regulators grant a <a href="https://crypto-bible.com/en/glossary/defi-basics/stablecoin/" target="_blank" rel="noopener">Stablecoin</a> issuer, certifying the company has passed review and committed to specific rules (reserve composition, periodic disclosure, redemption protections) before it can legally issue a <a href="https://rwa-bible.com/en/glossary/institutional/stablecoin/" target="_blank" rel="noopener">Stablecoin</a> to the public — not having a license doesn't automatically mean a company is a scam, but it does mean users lose the layer of protection that comes from regulatory vetting.
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Safe Harbor Provision
A temporary exemption window granted by regulators, letting issuers who haven't yet fully met new requirements keep operating legally while they complete the compliance process — rather than being deemed in violation the instant a rule takes effect.
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Sanctions Compliance and Address Freezing
When the U.S. Treasury's Office of Foreign Assets Control (OFAC) adds an address to its sanctions list, issuers like Tether or Circle can freeze that address's <a href="https://crypto-bible.com/en/glossary/defi-basics/stablecoin/" target="_blank" rel="noopener">Stablecoin</a> holdings directly at the <a href="https://crypto-bible.com/en/glossary/blockchain-fundamentals/smart-contract/" target="_blank" rel="noopener">Smart Contract</a> level, preventing transfer or redemption — meaning the <a href="https://rwa-bible.com/en/glossary/institutional/stablecoin/" target="_blank" rel="noopener">Stablecoin</a> you hold is fundamentally a form of "permissioned money" whose usability an issuer can revoke at any time, not a fully uncontrolled asset.
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Travel Rule (Stablecoin Application)
When a <a href="https://rwa-bible.com/en/glossary/institutional/stablecoin/" target="_blank" rel="noopener">Stablecoin</a> transfer exceeds a set threshold, exchanges and wallet providers must attach sender and recipient identity information that "travels" with the transfer to the counterparty platform, enabling law enforcement to trace the flow of funds — the threshold and enforcement scope vary by jurisdiction.
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